Bermuda Enacts Payroll Tax Amendments, Temporary Land Tax Increase, and Clarification on Financial Services Tax

Bermuda has enacted a series of laws for the implementation of certain measures of Budget 2018-2019. The main measures include:

• Payroll Tax Amendments:
  • The tax rate for the first payroll tax band for the employee portion (up to BMD 48,000) is reduced from 4.75% to 4.0%, and the rate for the second payroll tax band (BMD 48,001 up to 96,000) is increased from 5.75% to 6.50%;
  • The concept of notional remuneration for deemed employees and self-employed persons is repealed, with payroll tax levi…